Retail used-vehicle sales in August stood at 1.6 million, down 3.1% sequentially from the 1.75 million recorded in July. The used retail sales pace reached 18.7 million in August, down from July’s revised 20.6 million level. However, total retail used sales in the first eight months of the year have risen 4.5% year-over-year.
With new car supplies improving and interest rates at their highest level in 22 years, used car sales are expected to remain under pressure. Considering these factors and the possibility of the company reporting a year-over-year decline in revenue and earnings for the second quarter, I think avoiding fundamentally weak CarMax, Inc.’s (KMX) shares is wise.
